Overview

The Cleveland Triplex was Deal #02 — and it came entirely from a relationship built at a local REIA meetup three months earlier. The wholesaler called on a Tuesday morning with a triplex that needed to close by Friday. The seller was behind on property taxes and needed liquidity fast. The property had never been listed publicly. Without the prior relationship and the consistent follow-up, this deal would never have been seen.

The Numbers

Purchase price: $89,000. Down payment: $17,800 at 20% conventional. Three units — all vacant at closing. Market rent for comparable units in the neighbourhood: $680–$720/month. Total potential rent: $2,100/month. Mortgage, insurance, taxes, and management: $1,120/month. Projected cash flow from day one: $980/month.

The Strategy

Pure buy and hold. No major renovation required — the property needed cosmetic work only. New LVP flooring in all three units, fresh paint throughout, new fixtures in the bathrooms and kitchens, updated appliances. Total rehab cost: $11,500. The strategy was straightforward: buy clean, rent fast, hold long. No refinance planned. This deal was bought for monthly income and long-term appreciation, not capital recycling.

The Execution

Closed in 19 days using cash from the Deal #01 refinance — $41,000 covered the down payment and rehab with capital remaining. All three units were vacant at closing which made the rehab faster — no tenant coordination required. Cosmetic work completed in 3 weeks. All three units were rented within 45 days of closing at $700/month each — $2,100/month total. Professional property management at 8%. Total monthly expenses including mortgage: $1,120. Net cash flow: $980/month.

The Outcome

$980/month passive income from a $29,300 total capital investment (down payment plus rehab). Cash-on-cash return: 31.2% — the highest in the portfolio. Property currently valued at approximately $145,000 against an $89,000 purchase price. Unrealised equity of $56,000. No refinance taken — the plan is to hold this asset for 10+ years and allow the mortgage to pay itself down while rents increase with inflation.

The Lesson

Wholesaler relationships are worth more than any marketing spend. This deal was never on Zillow, never on the MLS, never available to any investor who was not already in the right network. The cost of building that relationship was 20 minutes of conversation at a meetup and two follow-up text messages over three months. The return on that investment was $980/month and $56,000 in unrealised equity. Every hour spent building relationships with wholesalers, agents, and other investors compounds far more than any paid advertising campaign.

What I Would Do Differently

Use financing instead of cash. Closing with the Deal #01 refinance cash preserved speed — which the seller needed — but it tied up $29,300 in a deal that could have been financed with only $17,800 down. The extra $11,500 kept in reserves could have accelerated the timeline to Deal #03 by approximately 60 days. Speed was worth something here but not $11,500 worth.